Hun, age 93, has accumulated substantial assets during his life. Among his many assets are the following, which he is considering giving to Koji, his grandson.

Asset Adjusted Basis Fair Market Value

Silver Corporation stock $900,000 $700,000

Red Corporation stock 70,000 71,000

Emerald Corporation stock 200,000 500,000

Hun has been in ill health for the past five years. His physician has informed him that he probably will not live for more than six months. Advise Hun on which of the stocks should be transferred as gifts and which as inheritances.